I have Vanguard Intl mutual fund VTRIX. If the US stock markets drop hard what will the effect be on my VTRIX mutual fund? I believe that the US stock markets are overbought. Your opions appreciated.
2006-11-24 05:35:11 · 4 answers · asked by Steve1VA 1 in Business & Finance ➔ Investing
International funds are good diversifier over time, but in the short term they seem to correlate strongly with the U.S. market. Take a look at the 2000 - 2002 period: int'l funds were not a safe haven during that drop.
2006-11-24 06:18:12 · answer #1 · answered by Born in Bost 1 · 1⤊ 0⤋
probably, but the per centage drop is lightly to be less than for the U S market, much less. The fund has a sound portfolio of relatively conservative investments. I think you will weather whatever storm blows over the horizon relatively well. Remember, the future is unsure. The U S market may not drop at all.
2006-11-24 06:18:43 · answer #2 · answered by Anonymous · 1⤊ 0⤋
There is such a close correlation nowadays between U.S. stocks and international stocks that it is difficult to imagine one group not reflecting a major move in the other. "drops hard" (your term) would be a major move. International firms' shares are certain to react to it, and thus, so would this mutual fund.
2006-11-24 06:35:22 · answer #3 · answered by jerrold 3 · 0⤊ 0⤋
Yes it will. When the US catches a cold, the rest of the world catches pneumonia.
2006-11-24 07:56:52 · answer #4 · answered by Anonymous · 0⤊ 0⤋